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Question: assuming that the liquidity premium theory is correct on march...

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Assuming that the liquidity premium theory is​ correct, on March​ 5, 2010, what did investors expect the interest rate to be on the​ one-year Treasury bill two years from that date if the term premium on a​ two-year Treasury note was

0.05​% and the term premium on a​ three-year Treasury note was 0.07​%?

Related to Solved Problem 5.2b] Use the data on Treasury securities in the following table to answer the question: Date 03/05/2010 T year 0 37% year 1.6% 0.88% Source: U.S. Department of the Treasury Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to and the term premium on a three-year Treasury note was 0.07%? The expected interest rate is 11%. (Round your response to two decimal places.) m premium on a two-year Treasury note was 0.05%

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